This year, potentially millions of drones are expected to land under Christmas treesthis year, according to the Federal Aviation Administration (FAA). Pilotinga drone might sound like child's play, but before you take flight,be sure to contact your insurance professional.

Recently, the FAA has mandated registration for most drones andhas issued guidelines on their use. But what happensin the event of unplanned equipment failure, or pilot error? (Afterall, most drone and model aircraft operators start out with littleor no aviation experience.) Also, with some models tipping thescales at up to 55 pounds, rogue drones can pose a significantthreat to people and property, which is why it’s always a smartcall to add insurance to your pre-flight checklist.

(Source: FAA/YouTube)

Below are insurance coverages and how they are likely to apply.Keep in mind all claims are handled on a case-by-case basis, andthere may be more exclusions and conditions that apply as dronetechnology evolves. Finally, don’t expect coverage if you’reoperating your drone in the commission of illegal activities.

Homeowners and renters insurance

Drones are most likely covered under a homeowners insurance policy(subject to a deductible). Coverage also appliesto renters insurance. According to the latest I.I.I. PulsePointssurvey, only 40 percent of renters in the United States havethis coverage, so it’s imperative that people who rent purchasethis coverage before operating a drone, as their landlord’sinsurance policy will not protect them.

Liability

The liability portion of your homeowners orrenters policy may cover you against lawsuits for bodily injury orproperty damage that you or family members cause to other peoplewith a drone. It may also cover privacy issues–for example if yourdrone inadvertently takes pictures or videotapes a neighbor whothen sues you. It will not cover any intentional invasion ofprivacy.

No-fault medical coverage

Your policy may provide no-fault medical coverage if a friend orneighbor is accidentally injured by your drone. (Coverage levelsvary, so check with your insurance professional.) But be aware thatthis coverage will not pay medical bills for your family members orpets if they are injured by your drone.

Theft or loss of a drone

While inexpensive drones are seemingly everywhere, the cost ofmore elaborate ones with UHD video recording, GPS navigation, etc.,can be sky-high — in some cases, more than $2,000, That'swhy it’s important to review your policy or talk to your insuranceprofessional to determine if your coverage is sufficient to replacethe drone if it is stolen. (A deductible may also apply.)

Auto insurance

If your drone crash-lands into your car, damage may be coveredunder your auto insurance if you purchased optional comprehensive insurance.(Comprehensive insurance covers damage to a car from fallen objectsand other disasters, subject to a deductible).

Commercial insurance

Not covered by a standard homeowners or renter’sinsurance policy: damage or injuries caused by a drone used forcommercial (i.e., business) purposes. If you are operating a dronefor commercial purposes, contact your insurance broker to make surethat you have the appropriate types and amounts of insurancecoverage.

Sure, the sky’s the limit for drone operators (well, below 400feet); however, anyone operating a recreational drone without theright insurance risks exposing themselves to unlimited personalliability.

For more information on drone regulations and registrationinformation, hover on over to the Federal Aviation Administration.

Reprinted with permission from the Insurance Information Institute.